A new posting on the official White House blog gives some additional perspective on his Homeowner Affordability and Stability Plan as well as the full text of President Obama’s speech at Dobson High School’s Mustang Gymnasium.
One of the questions I’ve seen asked about the plan is what’s being done for all of the homeowners who don’t find themselves in the same financial straits as those who are facing foreclosure – the ever-present, “What’s in it for me?” and/or “Why should I care?”
President Obama actually addressed this sentiment in his remarks:
Even if your neighborhood hasn’t been hit by foreclosures, you’re likely feeling the effects of this crisis in other ways. Companies in your community that depend on the housing market — construction companies and home furnishing stores and painters and landscapers — they’re all cutting back and laying people off. The number of residential construction jobs has fallen by more than a quarter million since mid-2006. As businesses lose revenue and people lose income, the tax base shrinks, which means less money for schools and police and fire departments. And on top of this, the costs to local government associated with a single foreclosure can be as high as $20,000.
So the effects of this crisis have also reverberated across the financial markets. When the housing market collapsed, so did the availability of credit on which our economy depends. And as that credit has dried up, it’s been harder for families to find affordable loans to purchase a car or pay tuition, and harder for businesses to secure the capital they need to expand and create jobs.
In the end, all of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to continue to deepen — a crisis which is unraveling home ownership, the middle class, and the American Dream itself. But if we act boldly and swiftly to arrest this downward spiral, then every American will benefit.
As someone who’s making his mortgage payments but cringing at what the list price on the foreclosure across the street from me will turn out to be – whatever it is, it’s sure to drag down my own home’s value – I have little issue with the plan if it actually works.
One side note from the day’s festivities. Apparently the president’s motorcade changed direction this morning and came westbound on Guadalupe Road from Alma School instead of eastbound from Dobson.
No one seemed ready for the change … my understanding is the police who had been stationed to the west of the school were scrambling at the last minute as the motorcade got ready to approach. And more than a few people hoping to catch a glimpse of the first presidential motorcade ever in the city of Mesa only could watch from a distance rather than watching the cars pass in front of them, leaving them a bit disappointed if not more than a bit annoyed.
Personally, I don’t think we can pin this one on the president directly but still …
[tags]Phoenix real estate, Homeowner Affordability and Stability Plan[/tags]